The Economy of China has being projected to expand by 79 percent in 2021, owing to 1.9 percent growth in 2020.
The International Monetary Fund (IMF), in a statement said that China has been able to control the COVID-19 pandemic; and economic activities has also resumed as normal.
The executive board of the IMF said in a statement that the Chinese economy has been able to recover from the pandemic, due to its swift policy actions to mitigate the impact of the crisis. He added that policy makers has provided finacial relief and fiscal support to protect most of the affected firms, while safeguarding financial stability. Also, macro economic and financial policies have supported the economy recovery.
The executive directors also encouraged the Chinese government that temporary measures to supporting financial sectors should be replaced with policies to address problem of loans, and strengthen regulatory and supervisory frame works.
IMF directors also welcomed continue progress on China’s structural reforms, especially in further opening up of finacial sector and improving labour mobility through ‘hukou reforms’ .
However,the IMF Executive Director for China Jin Zhongxia, added that, as Chinese economy continues to steadily recover from the COVID-19 shock ,the authorities remain committed in pursuing prudent policies that will fooster sustainable and high quality growth.
Jin prescribed that China will continue to expand global economic linkages, and cooperation to enhance its economy efficiency and resilience as China signs the Regional and Comprehensive Economic Partnership (RCEP) free trade agreement and the completion of bilateral investment agreement negotiation with European Union.
“The Chinese economy continues its fast recovery from the pandemic, helped by a strong containment effort and swift policy actions to mitigate the impact of the crisis.
“Policymakers have provided financial relief and fiscal support to protect the most-affected firms while safeguarding financial stability,” said IMF’s executive board.
Ijeoma Njoku reporting, Obinwannem News